It may seem strange to say, but if you’re looking for an Ontario Bankruptcy Trustee, you need protection.

Ontario Bankruptcy Trustees (officially called Licensed Insolvency Trustees, or LITs) are the only financial professionals in the province who are authorized to administer consumer proposal or bankruptcy proceedings. They’re an independent third-party who can make a deal with your creditors in a consumer proposal or file your bankruptcy — but it comes at a price.

When you file for a consumer proposal or bankruptcy, your Bankruptcy Trustee won’t charge you an upfront fee. But they have to get paid somehow. And that somehow comes from a percentage of your debt. Essentially, the more you pay, the more your Bankruptcy Trustee makes.

This means that if you disclose certain assets or information to your Bankruptcy Trustee, they will likely have you declare them in your bankruptcy, even if there is a legal way to make that asset exempt. Your Bankruptcy Trustee probably won’t tell you about loopholes that exist if it doesn’t benefit them.

This isn’t to say that Bankruptcy Trustees are bad — far from it. They’re not vultures who work only for your creditors. It might be more accurate to describe them as referees at a hockey game. They’re working to make sure the rules are upheld by both sides, but if you break the rules — even if you unknowingly omit information — they’re going to penalize you (just as they would your creditors) and they’re also not 100% on your side.

If you’re filing for bankruptcy, you need someone to represent you — and only you. You could hire a lawyer, but that will often be too expensive to afford if you’re already in a tough financial position. Even if you qualify for Legal Aid, certificates are issued depending on your legal issue and typically assisting with a bankruptcy isn’t covered.

But there is another solution. Just as there are accountants and tax lawyers who represent people when they have a tax problem, there are financial consultants who can represent you if you have a debt problem. They can prepare your information, educate you about your choices, administer your paperwork, and hold your hand through the process of a bankruptcy or consumer proposal, ensuring that you get a fair deal that protects you.

DebtCare Canada is one of these consultants. For more information about Ontario Bankruptcy Trustees, their role in a debt restructuring, or to get representation in a bankruptcy or consumer proposal, call us for a free consultation: 1-888-890-0888.